Posting a Vendor Refund in Quickbooks

This is what I did: 1) Go to Vendors -> Enter Bills. Once in pay bills click the credit radio button (next to "Bill"). Fill in the appropriate information (Vendor name, credit amount, then fill in the appropriate "expenses or items" category). Click Save & Close.

- This step places a credit (what they owe you) on your books.

2) Go to Banking -> Make Deposits. If you have pending deposits a pop up will show them, just click cancel to get to the main deposit screen. Make sure the account that you want to deposit the refund into is selected and fill in Vendor Name in Received From, the"From Account" is Accounts Payable and then the amount . Click Save & Close.

- This step records the refund in your account but has not been balanced out of your books.

3) Go to Vendors -> Pay Bills. You should see the credit show up. Click the box next to the credit you just created. Then down below in the Discount & Credit Information for Highlighted Bill section you will see Number of Credits = * and Total Credits Available * (where * is your data). Click Set Credits -> Done. You can now cancel out of the Pay Bills window.

Voila! A payment has been refunded back to your debit card account and your books are balanced.